YOUR COMPANY IS LOOKING FOR BUSINESS FINANCING!
FINANCING THE SMALL TO MEDIUM ENTERPRISE IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW / CONTACT US - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Financing for small and medium enterprises in Canada is a classic business conundrum. Many clients we talk to believe it simply doesn't exist, in other cases, it’s a case of business life of disappointment. Let's clarify some winning, and well as some losing strategies in the ' SME ' sector in Canada when it comes to raising capital and financing assets for your business. Let's dig in.
IS IT ALL ABOUT SIZE
Part of the challenge of SME (small medium enterprise) financing is size. Avoiding the obvious ‘is size important’ joke we were reading a column in yesterday’s Canadian business daily. The columnist was touting the benefits of a SMALL CAP (cap = capitalization) company.
Owners of small and medium-sized businesses in Canada will be very surprised to know that a small-cap stock in Canada is one that has a value of less than several hundred million dollars. Enough said... all of sudden financing your firm seems even a greater challenge because it would appear you're not even a small-cap!
Truth be told though there are thousands, perhaps hundreds of thousands of businesses in Canada in the SME sector with revenues in the 1 -25 Million dollar range. And guess what? These businesses are growing the Canadian economy, being acquired, and merging with similar firms to get more scale - as well as requiring new operating credit.
Most stats tell us that small business is really the backbone of the economy given the big guys don’t seem to be hiring a lot these days unless you're an outsourcing consultant!
WHAT TYPE OF FINANCING DOES YOUR COMPANY NEED
So what are the types of financing that the SME needs for operational cash flow , and where can he or she be successful in finding it from traditional financial institutions at terms and conditions acceptable to their overall credit profile? Financing needs include:
Term loans,
Revolving credit facilities,
Equipment financing
Rental solutions
Equity capital/Venture Capital/Private Equity
THE CHALLENGE OF ACCESSING BANK FINANCING
The major challenge of the SMEs in Canada is their ability to access traditional bank financing. Unlike the U.S. It is extremely difficult for the SME business owner to access the loan products offered to larger established corporations.
THE CANADIAN BANK OFFERING
The main two traditional financing products offered by banks to the SME sector are the federal Government of Canada Small Busines Loan which maxes out at 1,000,000.00$ ( not bad don't you think?) and working capital, term and equipment loans offered for eligible businesses via Canada's crown corporation bank, or even Export Development Canada EDC.
ALTERNATIVE FINANCING TO THE RESCUE
If there is one bright light in SME Canadian business financing it's the alternatives offered by non-bank commercial lenders. Understanding cash flow requirements is key .Although they are always priced to risk these solutions are varied and include:
A/R Financing
Inventory Loans
Access to Canadian bank credit/cash flow term loans
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loans/ Merchant Advance
Securitization
CONCLUSION
The bottom line is that small businesses don't necessarily have to have the external collateral, stellar financial statements, and impeccable personal credit histories that come with traditional financing solutions for a new loan.
For SME COMMERCIAL FINANCE solutions that make sense for your business, and whether you are small and medium sized, or a start-up seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with the SME conundrum.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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